Brent crude oil surged approximately 3.5% to exceed $117 per barrel on Friday, marking its highest point in more than six months, as geopolitical risks in the Middle East drove market movements.
The price increase followed statements from Tehran indicating it would target oil facilities, undersea cables, datacentres and artificial intelligence infrastructure in the Gulf region should a new US-Israeli military campaign commence against Iran. Market analysts attributed the spike to widespread reports that the US was considering renewed strikes on Iran following midterm elections rather than pursuing diplomatic channels, particularly as the regional conflict entered its eighth month. The price later moderated slightly to just over $116 per barrel, up approximately 2.7% for the session.
Regional tensions intensified throughout the week, with Iran’s Islamic Revolutionary Guards Corps claiming to have struck four commercial vessels in the strait of Hormuz on Wednesday. The US State Department ordered certain diplomats and families of American government employees to evacuate Saudi Arabia, which continues facing attacks from Houthi rebels operating from Yemen. Analysts noted particular concern about potential escalation following the US elections on 3 November, with apprehension rising that American and Israeli forces might be directed to launch strikes against Iran’s energy sector.
Additional supply pressures stemmed from intensified Houthi attacks on Saudi Arabian facilities and ongoing dangers to shipping transiting the strait of Hormuz. Security concerns in the region remained elevated as projectiles continued to threaten vessel movements through the critical waterway. Energy market observers also cited Ukraine’s bombardment of Russian diesel refineries as a contributing factor to broader supply anxieties affecting global oil prices.
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